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Low-skill offshoring: Labor market policies and welfare effects

Agnese, Pablo; Hromcová, Jana - 2014

We analyze the effects of low-skill workers offshoring on the welfare of the economy. In the context of a matching … unemployment benefits but only a small reduction in the vacancy cost to compensate for the negative welfare effects of offshoring … model with different possible equilibria, we discuss two policies that could potentially outweigh the negative welfare …

Persistent link: https://www.econbiz.de/10010427198

Offshoring, Endogenous Skill Decision, and Labor Market Outcomes

Agnese, Pablo; Hromcová, Jana - 2016

-deteriorating effects of offshoring. As a result, we aim at restoring welfare by increasing the opportunity cost of staying low-skill. In …We discuss the effects of low-skill offshoring on the endogenous schooling decision of workers along with the potential …. Our exercise suggests that the endogenous adjustment of low-skill workers can only partially offset the welfare …

Persistent link: https://www.econbiz.de/10011584614

Globalization, Jobs, and Welfare: The Roles of Social Protection and Redistribution

Ranjan, Priya - 2015

This paper studies the welfare and policy implications of globalization when risk averse workers face the risk of … welfare of workers but could reduce social welfare as well. Both unemployment benefits and severance payments can protect … workers against labor income risk, but the latter enhances welfare more if job destruction is the source of unemployment. When …

Persistent link: https://www.econbiz.de/10010480875

Labor Market Competition and Attitudes toward Immigrants: New Evidence from Asia

Lee, Zeewan; Fong, Joelle H. - 2023

Immigrants in a destination country both alter the prospects of economic development and influence the livelihood of natives. Using data from 10 Asian countries in the 2018-2020 World Value Survey (WVS), we provide new evidence regarding the impact of skill-driven labor market competition on...

Persistent link: https://www.econbiz.de/10014307576

On Trade Policy Preference and Offshoring Ties

Bandyopadhyay, Subhayu; Basu, Arnab K.; Chau, Nancy H.; … - 2022

This paper unpacks the role of the domestic content of imports as a novel source of policy interdependence along the global supply chain. We show how a rise in local contents embodied in imports can skew national trade policy preferences, and pull upstream and downstream countries in asymmetric...

Persistent link: https://www.econbiz.de/10014296526

The Surprisingly Swift Decline of U.S. Manufacturing Employment

Pierce, Justin R.; Schott, Peter K. - 2014

This paper finds a link between the sharp drop in U.S. manufacturing employment beginning in 2001 and a change in U.S. trade policy that eliminated potential tariff increases on Chinese imports. Industries where the threat of tariff hikes declines the most experience more severe employment...

Persistent link: https://www.econbiz.de/10010328710

Offshoring of Medium-skill Jobs, Polarization, and Productivity Effect: Implications for Wages and Low-skill Unemployment

Vallizadeh, Ehsan; Muysken, Joan; Ziesemer, Thomas - 2015

We examine the effects of endogenous offshoring on cost-efficiency, wages and unemployment in a taskassignment model … with skill heterogeneity. Exact conditions for the following insights are derived. The distributional effect of offshoring … (high-) low-skill-intensive tasks is similar to (unskilled-) skill-biased technology changes, while offshoring medium …

Persistent link: https://www.econbiz.de/10010475226

Offshoring potential and employment dynamics

Boockmann, Bernhard - 2014

This study addresses the impact of offshorability (a job characteristic indicating how easily a job can be offshored) on employment changes and worker mobility in Germany. A composite measure of offshorability for German data is used which broadens existing measurements such as Blinder (2009)....

Persistent link: https://www.econbiz.de/10010484723

Offshoring of medium-skill jobs, polarization, and productivity effect: Implications for wages and low-skill unemployment

Vallizadeh, Ehsan; Muysken, Joan; Ziesemer, Thomas - 2015

We examine the effects of endogenous offshoring on cost-efficiency, wages and unemployment in a task-assignment model … with skill heterogeneity. Exact conditions for the following insights are derived. The distributional effect of offshoring … (high-) low-skill-intensive tasks is similar to (unskilled-) skill-biased technology changes, while offshoring medium …

Persistent link: https://www.econbiz.de/10010500457

Implications of firm heterogeneity for offshoring, wage and employment

Chen, Xi - 2018

domestic labor force at the sector-level. In order to better elucidate the offshoring employment relationship, this paper … production-side shock that changes firms' offshoring decision can influence the local economy and its labor market. …

Persistent link: https://www.econbiz.de/10011985494